EU referendum causes uncertainty for UK property market

May 18, 2016 by Brendan O'Neill

Property Market

The UK property market has slowed down as the date for the EU referendum approaches, according to some of the leading UK property experts.

At a recent event for the British Property Federation, industry chiefs stated that decisions to be made by developers and investors in property were being delayed until the outcome of the EU referendum is known, after 23rd June 2016.

As the UK experiences political and economic uncertainty, investors are being extra cautious before concluding property deals, along with those with property to sell. The senior managing director for Europe at Oxford Properties, Paul Brundage, said:

“We need not to get caught up in these macro issues, but it’s hard not to be absorbed by all these things.”

According to Brundage, improved engagement is required between the government and the property industry, to focus on how the market may be affected by social and political events.

Other experts believe that the next few months will bring uncertainty which will have a direct impact on investment in the property market. However, others view the EU referendum as an opportunity for long term investment. One expert said that he believed the fears surrounding the poll had been “somewhat overblown”. Analysts from Liberum said “uncertainty is the principal short-term negative for property”.

The impending EU referendum may also have an impact on UK borrowers, as interest rates may increase. To ensure that they have the most suitable deal, borrowers are advised to seek professional advice from a mortgage adviser who has been on a CeMAP course.